International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Barclays Back to School (September 2015)
21 slides from International Flavors & Fragrances's conference presentation, Sep 10, 2015
Slide 1: Barclays Back to School
Barclays Back to School Alison Cornell, Executive Vice President & CFO September 10, 2015
Slide 2: Forward-looking statements
Statements made in this presentation that relate to our future performance or future financial results or other future events (identified by such terms as “expect”, “anticipate”, “believe”, “outlook”, “guidance”, “may”, “target” or similar terms and variations thereof) are forward-looking statements
Slide 3: Agenda
Overview Investment Thesis Summary Vision 2020 Recent Performance Agenda
Slide 4: Flavor & Fragrance Market Overview
Total Global F&F Market (B$) Segment Share of F&F Market (%) North America GA 3.1 21.6 LATAM Europe 6.4 2.0 5.0 5.1 18.0 2.4 4.8 1.6 4.6 4.6 10.6 6.5 3.5 2014 Flavors (~4% CAGR) CAGR (14-19) ~75% growth expected in emerging markets 2.2% 1.7% 4.5% 5.9% 5.2% Africa & Mid-East Fragrance Ingredients (2%
Slide 5: Flavor & Fragrance Market Share Dynamics
• IFF holds ~16% market share • Top 4 represent 2/3 of market • Market fragmented outside top players • Barriers to entry include: – Research & Development – Customer relationships – Regulatory expertise – Consumer insight – Global platform 25% 16% 16% 12% 31% Givaudan IFF Symrise Firmenich Other So
Slide 6: Cosmetic Actives Market Overview
$0.7 $0.7 Bioland 10% 7% 5% 4% 4% 4% 4% 3% 3% 3% 53% Cosmetic Actives Market Share Natural Actives (6 to 7% CAGR)* Synthetic Actives (~2 to 4% CAGR)* BASF Silab Air Liquide Gattefossé Other Cosmetic Actives Market Overview Lonza IFF DSM Croda Symrise $1.4B Total Cosmetic Actives Market * Expected an
Slide 7: IFF at a Glance
• 126 Years Old & 51 Years on NYSE • S&P 500 Company • ~$9.2 Billion Market Capitalization • $3.1 Billion in Sales, with Top Tier Adjusted EBITDA Margin of 22.2%* • 79% of Sales outside the U.S. • 29 Manufacturing Facilities • 31 Creative Centers • ~6,400 Employees at a Glance * Adjusted EBITDA marg
Slide 8: How We Compete to Win
• Consumer Insight • Research and Development • Creative Expertise • Consumer Experience How We Compete to Win
Slide 9: High Quality Investment Thesis
• Strong Growth Dynamics • Proven Profitability • Excellent Cash Flow Generation • Industry-Leading Returns High Quality Investment Thesis
Slide 10: Strong Growth Dynamics
5% 5% 6% 4% 6% 7% 7% 5% 6% 1-Yr CAGR 3-Yr CAGR 5-Yr CAGR Strong Growth Dynamics Currency Neutral Sales Growth For year ending 2014 Total Company: Currency Neutral Sales Growth Flavors: Like-For-Like Currency Neutral Sales Growth Fragrances: Currency Neutral Sales Growth * Currency neutral sales are
Slide 11: Proven Profitability
Proven Profitability 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% $300 $350 $400 $450 $500 $550 $600 2010 2011 2012 2013 2014 Adjusted Operating Profit Adjusted Operating Profit Margin Adjusted Operating Profit Trends * Adjusted operating profit and adjusted operating profit margin ar
Slide 12: Excellent Cash Flow Generation
Excellent Cash Flow Generation * Adjusted operating cash flow is a Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at IFF.com 4.5% 6.5% 8.5% 10.5% 12.5% 14.5% 16.5% 18.5% $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 2010 2011 2012 2013 2014 Adjusted Operating Cash Flow Trends A
Slide 13: Industry-Leading Returns
Industry-Leading Returns 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% $120 $140 $160 $180 $200 $220 $240 $260 $280 2010 2011 2012 2013 2014 Adjusted Economic Profit Adjusted Economic Profit Spread Adjusted Economic Profit / Spread Trends * Adjusted economic profit and adjusted economic profit spread
Slide 14: 2020 Vision
We are the catalyst for discoveries that spark the senses & transform the everyday Build Our Talent and Organization Continuously Improving Create a Sustainable Future Lead in key markets Close gaps across value enhancing categories Achieve #1 position with targeted customers Drive differentiation i
Slide 15: 2016 to 2020 Financial Targets
Currency neutral operating profit growth 7-9% Currency neutral EPS growth 10% Currency neutral sales growth 4-6% 2016 to 2020 Financial Targets
Slide 16: Accelerate Growth Through M&A
Targeting $500M to $1B of sales through acquisitions by 2020 Accelerate Growth Through M&A
Slide 17: Accelerating Shareholder Return
Cash Returned to Shareholders Goal 50-60% of net income Dividend Share Authorization +20% +$250M Accelerating Shareholder Return
Slide 18: Financial Highlights
Currency neutral adjusted operating profit growth* +7% Currency neutral adjusted EPS growth* +10% Currency neutral sales growth* +5% Q2 2015 1H 2015 +9% +11% +6% * Currency Neutral Sales, Currency Neutral Adjusted Operating Profit & Adjusted EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP
Slide 19: FY 2015 Currency Neutral Outlook
* Currency Neutral Sales, Currency Neutral Adjusted Operating Profit & Adjusted EPS are Non-GAAP metrics, please see our GAAP to Non-GAAP Reconciliation at IFF.com FY 2015 Currency Neutral Outlook Acquisition-related sales strength offsetting organic softness arising from macro-economic conditions i
Slide 20: Summary
Summary • IFF is a high-quality investment with a proven track-record of success • Strategy focused on growth, differentiation and shareholder value • Solid year-to-date financial performance • Expecting to finish 2015 strong… financially & strategically… and enter 2016 on solid footing
Slide 21: Slide 21
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